ExxonMobil Will Invest US$5 Billion In Guyana In Preparation For Oil Production

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ExxonMobil will invest US$5bn in Guyana in preparation for oil production by 2020, mostly for drilling, manufacturing, procurement of materials and the FPSO.

The news followed a presentation by the US major’s country manager, Jeff Simon, as part of the Ministry of Natural Resources’ outreach program to provide information on the progress of the country’s new sector, government information agency GINA reported.

Simon said that ExxonMobil’s local unit Esso Exploration and Production Guyana applied for a production licence in December and has contracted a 100,000b/d FPSO from SBM Offshore.

ExxonMobil is expected to drill some 17 wells to extract the oil, which is said to be equivalent to between 800Mb and 1.4Bb, according to the report, which added that ExxonMobil has invested US$800mn to date to explore Guyana offshore block Stabroek.

For his part, minister Raphael Trotman announced that a bill to govern the newly established Petroleum Commission will shortly be presented to the national assembly. A local content policy has also been drafted.

President David Granger has also met the Carter Center’s country representative, Jason Calder, who updated the head of state on the Extractive Industries Transparency Initiative (EITI).

A multi-stakeholder committee has been established as part of the country’s preparation to apply for EITI candidacy.

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